BPCE, Generali to Combine Asset Management Operations, Form $1.98T European Investment Giant

The combined firm would become the world’s largest insurance manager, with more than half of managed assets coming from pension and insurance clients.

France’s Groupe BPCE and Italy’s Assicurazioni Generali S.p.A. announced Tuesday that the two asset management firms had signed a nonbinding memorandum of understanding to form a joint venture between their respective asset management operations: Natixis Investment Management and Generali Investments Holding. The deal is expected to close by early 2026, subject to regulatory approval.

Both Natixis IM, the asset management group of BPCE, and Italy-based Generali IH would own a 50% stake of the combined business. Combined, the duo would manage 1.9 trillion euros ($1.98 trillion) in assets under management.

Generali IH managed 632 billion euros in assets, as of September 30, 2024, while Natixis IM had $1.279 trillion euros in AUM through the same date, the two firms have reported.

The joint venture, which the two institutions would co-control, would become the ninth-largest asset manager in the world and the second-largest asset manager based in Europe, behind Amundi with 2.2 trillion euros in AUM.

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Approximately 61% of the combined companies’ firmwide assets under management are based in Europe, 34% are in North America, and 5% are in Asia and other geographies. Fixed income will make up 65% of the assets, while equities and private markets will account for 21% and 14% of the assets, respectively.

The combined firm would also become the world’s largest insurance asset manager; approximately 61% of its assets are managed for pension and insurance clients. Generali IH bought U.S.-based asset manager Conning Holdings, which has specialized for years in managing insurance assets, in 2023.

Woody Bradford, CEO of Generali Investments Holding and the CEO of Conning before it was acquired, is expected to be named as CEO of the joint venture, with Phillip Setbon, currently the CEO of Natixis IM, to be named as deputy CEO.

“The creation of a joint venture with BPCE would present a unique opportunity to establish a European leader and a top 10 global asset manager building on strong roots in Italy, France and the U.S. to serve the constantly evolving needs of our customers,” said Phillipe Donnet, CEO of Assicurazioni Generali, in a statement. “Our home country Italy and all other countries in which we serve our customers would benefit from an even stronger asset management platform with greater investment capabilities that deliver real benefits to the economy.”

In addition to this tie-up, Generali announced last week that it would acquire a majority stake in $6 billion AUM private credit manager MGG Investment Group through its insurance asset management subsidiary Conning, which will take a 77% stake.